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UNDERSTANDING DAO CONCEPT

Most of the times, smart contracts are compared to vending machines. But try to think about a vending machine that not only takes money from you and gives you a snack in return but also automatically re-orders the goods. This machine also orders cleaning services and pays its rent without any actions from the outside. It has no managers and all processes were pre-written into the code.

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Join DAO now for special giveaway

join us now on telegram : https://t.me/geomachat

Website : https://thegeomadao.com

#DAO #GeomaDAO #DeFi

UNDERSTANDING DAO CONCEPT

Most of the times, smart contracts are compared to vending machines. But try to think about a vending machine that not only takes money from you and gives you a snack in return but also automatically re-orders the goods. This machine also orders cleaning services and pays its rent without any actions from the outside. It has no managers and all processes were pre-written into the code.

This is the simplest explanation of how DAO works. A DAO (Decentralized Autonomous Organization) can be seen as the most complex form of a smart contract, where the bylaws of the decentralized organization are embedded into the code of the smart contract, using complex token governance rules.

Governance
Governance is the way rules, norms and actions of how people interact with each other are structured, sustained, regulated and held accountable. It regulates the process of decision-making among the actors involved in a collective problem that leads to the creation, reinforcement, or reproduction of social norms and institutions. The degree of formality depends on the internal rules of a given organization and, externally, with its business partners. As such, governance may take many forms, driven by many different motivations and with many different results. Governance refers to all processes of governing, whether by a government, market or network, family, tribe — formal or informal — through the laws, norms, power or language.
DAOs aim to disrupt traditional governance structures of all kinds, and challenge the way we currently think about governance.


To be fully operational, DAO needs a set of rules according to which it will operate. Those rules are encoded as a smart contract, which is essentially a computer program, that autonomously exists on the Internet, but at the same time it needs people to perform task that it can’t do by itself.
Once the rules are established, a DAO enters a funding phase. This is a very important part for two reasons. Firstly, a DAO has to have some kind of an internal property, tokens that can be spent by the organization or used to reward certain activities within it.
*Secondly, by investing in a DAO, users get voting rights and subsequently the ability to influence the way it operates.
When a DAO is fully operational, the decisions on how its funds will be spent are made by reaching a consensus. DAO stakeholders can make proposals regarding its future. In order to prevent the network being spammed with proposals, a monetary deposit could be required to make one or not. Depends on community rules.
Learn more, visit https://thegeomadao.com

https://t.me/geomachat

Geoma DAO is Decentralised Finance is made possible by Blockchain Technology
Join DAO now for special giveaway

join us now on telegram : https://t.me/geomachat

Website : https://thegeomadao.com

#DAO #GeomaDAO #DeFi

Geoma DAO is DeFi project that care for the future, innovative project with potential succeds
if you looking any project to invest, i would like to suggest you to invest on this project because you can withdraw your investment anytime.
all investor fund will held by escrow on their platform !

website : https://thegeomadao.com